KLM to cut costs, boost income to generate €1.1bn
Friday 25 May 2012
The Dutch arm of airline group Air France-KLM will have to contribute €1.1bn to the company's reorganisation, group president Peter Hartman said in Brussels on Thursday, the Financieele Dagblad reported.
Some €400m will have to come from increased sales while the rest will be generated by staffing cuts and other cost savings, Hartman is quoted as saying. This will not mean compulsory redundancies, he said.
Talks are currently under way with airline unions, the FD said.
In total, the group wants to achieve annual structural savings of €2bn. The company made a loss of some €1bn last year.